SEGMENT INFORMATION

Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Our segments follow the accounting policies used for our consolidated financial statements as described in Note 2. Evaluation of segment performance is primarily based on a combination of revenues, gross profit (loss), income (loss) before taxes and inventory.



	Years End December 31,
(in thousands)	2017			2016			2015
Revenues:⁽¹⁾
Builder Operations
Texas	$	220,887		$	201,473		$	121,979
Georgia	214,757			163,942			132,288
Corporate and Other⁽²⁾	—			—			—
Land Development	18,730			14,913			36,878
	$	454,374		$	380,328		$	291,145
Gross profit (loss):^(1)(3)(4)
Builder Operations
Texas	$	53,240		$	50,320		$	29,992
Georgia	49,052			37,114			31,733
Corporate and Other⁽²⁾	(9,293		)	(5,659		)	(9,108		)
Land Development	5,454			4,600			9,635
	$	98,453		$	86,375		$	62,252
Income (loss) before taxes:⁽⁴⁾
Builder Operations
Texas	$	36,224		$	34,939		$	19,945
Georgia	34,636			24,639			21,744
Corporate and Other⁽²⁾⁽⁵⁾	(10,943		)	(12,635		)	(12,091		)
Land Development	4,320			3,611			5,118
	$	64,237		$	50,554		$	34,716
Inventory:⁽³⁾
Builder Operations
Texas	$	110,872		$	76,878		$	61,403
Georgia	99,613			90,859			86,707
Corporate and Other⁽²⁾⁽⁶⁾	12,628			9,834			7,869
Land Development	272,542			232,726			188,153
	$	495,655		$	410,297		$	344,132

(1)

Builder operations segment revenue does not equal revenue from the sale of residential units included in the consolidated statements of income in periods when our controlled builders have sales of land or lots. Revenue from such sales is included in builder operations segment revenue as it relates to builder operations, and included in revenue from sale of land and lots in the consolidated statements of income.


(2)	Corporate and other is comprised principally of general corporate expenses associated with administrative functions such as finance, treasury, information technology and human resources.


(3)	Due to the change in our segments in 2016, as discussed in Note 2, we reclassified (i) $0.1 million in gross profit from the land development segment to the builder operations segment for the year ended December 31, 2015 and (ii) $63.4 million in inventory from the builder operations segment to the land development segment for the year ended December 31, 2015.

(4)

Certain indirect project costs previously classified as salary expense and selling, general and administrative expense have been reclassified as cost of residential units for the year ended December 31, 2015 to properly present cost of residential units, salary expense, and selling, general and administrative expense. Therefore, amounts presented differ from the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2015. See Note 2 for further discussion on this change in classification.


(5)	Results from Green Brick Title and Challenger Subsidiary are included in income (loss) before taxes for the corporate and other operating segment.


(6)	Corporate and other inventory consists of capitalized overhead and interest related to work in process and land under development.